Ascendant Resources Announces US$7.5 Million Silver Stream With Maverix Metals

• 22.5% of silver production with 25% ongoing payment equals approximately 2% of Ascendant’s total projected revenue for 2019
  

TORONTO, March 28, 2019 (GLOBE NEWSWIRE) --  Ascendant Resources Inc. (TSX: ASND) (OTCQX: ASDRF) ("Ascendant" or the "Company”) is pleased to announce that it has entered into a silver purchase and sale agreement (the “agreement”) with Maverix Metals Inc. (“Maverix”) to support the Company’s working capital position and provide financial stability in a non-dilutive manner. Maverix will make an upfront payment of US$7.5 million dollars to Ascendant for the right to purchase 22.5% of the life of mine payable silver production from the company’s El Mochito mine in Honduras.

In addition to the initial payment, the Company will be entitled to an ongoing payment of 25% of the value of the corresponding portion of payable silver priced at the lesser of the average silver price during the preceding month or the price of silver at the time of delivery. The Agreement includes a step-down option whereby the stream percentage will be reduced from 22.5% down to 20% upon certain production milestones being met.

Upon the satisfaction of additional conditions, a mechanism exists to increase the value of the stream with an additional upfront payment of US$7.5 million for the right to purchase a combined total of 40% of the life of mine payable silver production from El Mochito under similar commercial terms. In this case, the stream percentage will be reduced to 30% once Maverix has purchased a cumulative total of 3,000,000 ounces of silver.

Chris Buncic, President & CEO of Ascendant stated, “Our transaction with Maverix represents a strategic and non-dilutive financing solution for the Company to strengthen its balance sheet as we continue to drive improvements at El Mochito. This silver stream allows us to preserve exposure to primary metal prices while maintaining a significant majority of the payable silver from El Mochito. We are very pleased to be working together with Maverix for the next growth chapter at El Mochito. At the same time, we continue to make excellent progress with the previously announced project financing with OPIC with hopes to begin construction early in the third quarter.”

“Maverix is excited to partner with Ascendant by offering a financing solution that will allow them to significantly improve their balance sheet and keep the operating team at El Mochito fully focused on unlocking the mine’s long-term potential,” commented Dan O’Flaherty, CEO of Maverix. “The addition of this cash flowing asset further strengthens our portfolio and meaningfully increases our attributable precious metals production per share.”

Ascendant was very pleased with the engagement and success of Scotiabank, who acted as financial advisor to Ascendant in the silver stream transaction.

Closing of the transaction is expected in April 2019.

About Maverix Metals Inc.

Maverix is a gold royalty and streaming company. Maverix’s mission is to provide its shareholders with significant low risk leverage to precious metal prices and to increase underlying per share value by expanding its portfolio with acquisitions of high-quality royalties and streams that offer robust returns.

About Ascendant Resources Inc.

Ascendant is a Toronto-based mining company focused on its 100%-owned producing El Mochito zinc, lead and silver mine in west-central Honduras and its high-grade polymetallic Lagoa Salgada VMS Project located in the prolific Iberian Pyrite Belt in Portugal.

After acquiring the El Mochito mine in December 2016, Ascendant spent 2017 and 2018 implementing a rigorous and successful optimization program restoring the historic potential of El Mochito, a mine in production since 1948, to deliver record levels of production with profitability restored. The Company now remains focused on further cost reduction and operational improvements to drive profitability in 2019 and beyond. With a significant land package of approximately 11,000 hectares in Honduras and an abundance of historical data, there are several near-mine and regional targets providing longer term exploration upside which could lead to further Mineral Resource growth.

Ascendant holds an interest in the high-grade polymetallic Lagoa Salgada VMS Project located in the prolific Iberian Pyrite Belt in Portugal. The Company is engaged in exploration of the Project with the goal of expanding the already-substantial Mineral Resource Estimate of over 20 million tonnes and testing additional known targets as defined by the 2018 exploration program. The Company’s acquisition of its interest in the Lagoa Salgada Project offers a low-cost entry point to a potentially significant exploration and development opportunity. The Company holds an additional option to increase its interest in the Project upon completion of certain milestones.

Ascendant Resources is engaged in the ongoing evaluation of producing and development stage mineral resource opportunities, on an ongoing basis. The Company's common shares are principally listed on the Toronto Stock Exchange under the symbol "ASND". For more information on Ascendant Resources, please visit our website at www.ascendantresources.com.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

For further information please contact:
Katherine Pryde
Director, Communications & Investor Relations
Tel: 888-723-7413
info@ascendantresources.com

Forward Looking Information
           
This news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "guidance", "scheduled", "estimates", "forecasts", "strategy", "target", "intends", "objective", "goal", "understands", "anticipates" and "believes" (and variations of these or similar words) and statements that certain actions, events or results "may", "could", "would", "should", "might" "occur" or "be achieved" or "will be taken" (and variations of these or similar expressions). Forward-looking information is also identifiable in statements of currently occurring matters which may continue in the future, such as "providing the Company with", "is currently", "allows/allowing for", "will advance" or "continues to" or other statements that may be stated in the present tense with future implications. All of the forward-looking information in this news release is qualified by this cautionary note.

Forward-looking information in this news release includes, but is not limited to, statements regarding the ability of the Company to fully comply with its obligations under the term of the Agreement, the commencement of the expansion project at el Mochito and the continuation of the exploration program at Lagoa Salgada. The material factors or assumptions that Ascendant identified and were applied by Ascendant in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to, the ability of the Company to comply in full with its obligations under the Agreement,  the ability to commence the expansion of the El Mochito mine and continue with the exploration program at Lagoa Salgada.

The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), uncertainties related to the development and operation of Ascendant's projects, dependence on key personnel and employee and union relations, risks related to political or social unrest or change, rights and title claims, operational risks and hazards, including unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, volatile financial markets that may affect Ascendant's ability to obtain additional financing on acceptable terms, the failure to obtain required approvals or clearances from government authorities on a timely basis, uncertainties related to the geology, continuity, grade and estimates of Mineral Reserves and Mineral Resources, and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, tax refunds, hedging transactions, the inability of the Company to meet its guidance, the inability of the Company to fully comply with its obligations under the Agreement, the inability to commence the expansion of the El Mochito mine, and continue with the exploration program at Lagoa Salgada, as well as the risks discussed in Ascendant's most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities and available at www.sedar.com.

Should one or more risk, uncertainty, contingency, or other factor materialize, or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. Ascendant does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.